PHILLIPS 66 (R66.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:R66 - US7185461040 - Common Stock
120.32 EUR
+3.88 (+3.33%)
We assign a fundamental rating of 3 out of 10 to R66. R66 was compared to 75 industry peers in the Oil, Gas & Consumable Fuels industry. While R66 seems to be doing ok healthwise, there are quite some concerns on its profitability. R66 has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- R66 had positive earnings in the past year.
- R66 had a positive operating cash flow in the past year.
- R66 had positive earnings in 4 of the past 5 years.
- R66 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.97%, R66 is doing worse than 65.33% of the companies in the same industry.
- The Return On Equity of R66 (5.56%) is worse than 65.33% of its industry peers.
- R66 has a Return On Invested Capital of 3.56%. This is in the lower half of the industry: R66 underperforms 73.33% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for R66 is in line with the industry average of 8.82%.
- The 3 year average ROIC (8.67%) for R66 is well above the current ROIC(3.56%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.97% | ||
| ROE | 5.56% | ||
| ROIC | 3.56% |
ROA(3y)8.86%
ROA(5y)4.33%
ROE(3y)22.64%
ROE(5y)10.75%
ROIC(3y)8.67%
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of R66 (1.13%) is worse than 73.33% of its industry peers.
- In the last couple of years the Profit Margin of R66 has declined.
- With a Operating Margin value of 1.99%, R66 is not doing good in the industry: 78.67% of the companies in the same industry are doing better.
- R66's Operating Margin has declined in the last couple of years.
- R66 has a Gross Margin of 10.79%. This is amonst the worse of the industry: R66 underperforms 80.00% of its industry peers.
- In the last couple of years the Gross Margin of R66 has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.99% | ||
| PM (TTM) | 1.13% | ||
| GM | 10.79% |
OM growth 3Y52.02%
OM growth 5Y-14.16%
PM growth 3Y7.9%
PM growth 5Y-12.42%
GM growth 3Y3.1%
GM growth 5Y-3.37%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), R66 is creating some value.
- R66 has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, R66 has less shares outstanding
- Compared to 1 year ago, R66 has a worse debt to assets ratio.
2.2 Solvency
- R66 has an Altman-Z score of 3.17. This indicates that R66 is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 3.17, R66 is doing good in the industry, outperforming 76.00% of the companies in the same industry.
- The Debt to FCF ratio of R66 is 16.10, which is on the high side as it means it would take R66, 16.10 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of R66 (16.10) is worse than 66.67% of its industry peers.
- A Debt/Equity ratio of 0.71 indicates that R66 is somewhat dependend on debt financing.
- The Debt to Equity ratio of R66 (0.71) is worse than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 16.1 | ||
| Altman-Z | 3.17 |
ROIC/WACC0.45
WACC7.98%
2.3 Liquidity
- R66 has a Current Ratio of 1.23. This is a normal value and indicates that R66 is financially healthy and should not expect problems in meeting its short term obligations.
- R66 has a Current ratio (1.23) which is in line with its industry peers.
- A Quick Ratio of 0.87 indicates that R66 may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.87, R66 is in line with its industry, outperforming 41.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
- R66 shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -58.78%.
- Measured over the past years, R66 shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.44% on average per year.
- Looking at the last year, R66 shows a very negative growth in Revenue. The Revenue has decreased by -10.68% in the last year.
- The Revenue has been growing slightly by 5.91% on average over the past years.
EPS 1Y (TTM)-58.78%
EPS 3Y2.29%
EPS 5Y-5.44%
EPS Q2Q%23.53%
Revenue 1Y (TTM)-10.68%
Revenue growth 3Y8.69%
Revenue growth 5Y5.91%
Sales Q2Q%-3.27%
3.2 Future
- Based on estimates for the next years, R66 will show a very strong growth in Earnings Per Share. The EPS will grow by 22.02% on average per year.
- R66 is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.15% yearly.
EPS Next Y6.2%
EPS Next 2Y39.71%
EPS Next 3Y28.08%
EPS Next 5Y22.02%
Revenue Next Year-6.53%
Revenue Next 2Y-5.38%
Revenue Next 3Y-2.41%
Revenue Next 5Y-2.15%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 36.57 indicates a quite expensive valuation of R66.
- Based on the Price/Earnings ratio, R66 is valued a bit more expensive than the industry average as 72.00% of the companies are valued more cheaply.
- R66 is valuated rather expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 11.83, the valuation of R66 can be described as very reasonable.
- 62.67% of the companies in the same industry are more expensive than R66, based on the Price/Forward Earnings ratio.
- R66 is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.57 | ||
| Fwd PE | 11.83 |
4.2 Price Multiples
- 74.67% of the companies in the same industry are cheaper than R66, based on the Enterprise Value to EBITDA ratio.
- 69.33% of the companies in the same industry are cheaper than R66, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.01 | ||
| EV/EBITDA | 13.04 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as R66's earnings are expected to grow with 28.08% in the coming years.
PEG (NY)5.9
PEG (5Y)N/A
EPS Next 2Y39.71%
EPS Next 3Y28.08%
5. Dividend
5.1 Amount
- R66 has a Yearly Dividend Yield of 3.43%. Purely for dividend investing, there may be better candidates out there.
- R66's Dividend Yield is comparable with the industry average which is at 5.11.
- Compared to an average S&P500 Dividend Yield of 1.82, R66 pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.43% |
5.2 History
- The dividend of R66 has a limited annual growth rate of 5.09%.
Dividend Growth(5Y)5.09%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- R66 pays out 127.72% of its income as dividend. This is not a sustainable payout ratio.
- R66's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP127.72%
EPS Next 2Y39.71%
EPS Next 3Y28.08%
PHILLIPS 66 / R66.DE FAQ
Can you provide the ChartMill fundamental rating for PHILLIPS 66?
ChartMill assigns a fundamental rating of 3 / 10 to R66.DE.
What is the valuation status of PHILLIPS 66 (R66.DE) stock?
ChartMill assigns a valuation rating of 2 / 10 to PHILLIPS 66 (R66.DE). This can be considered as Overvalued.
Can you provide the profitability details for PHILLIPS 66?
PHILLIPS 66 (R66.DE) has a profitability rating of 3 / 10.
Can you provide the financial health for R66 stock?
The financial health rating of PHILLIPS 66 (R66.DE) is 4 / 10.
How sustainable is the dividend of PHILLIPS 66 (R66.DE) stock?
The dividend rating of PHILLIPS 66 (R66.DE) is 4 / 10 and the dividend payout ratio is 127.72%.